IMF Advises UK Against Prioritising Higher Bank Taxes Ahead of October Budget
The International Monetary Fund has urged Britain's finance minister, John Healey, to consider property-tax reform, a broader VAT base and more targeted public spending before increasing taxes on banks or workers, as he prepares the government's October budget. The IMF praised efforts to reduce borrowing while warning that Britain's tax burden is already historically high.
The budget is attracting close attention from bond investors after higher long-term borrowing costs reduced the government's room to manoeuvre under its fiscal rules. Economists estimate that fiscal headroom has shrunk significantly since March.
The government has pledged discipline, but investors remain sensitive to unexpected borrowing, spending or tax announcements. Healey is due to deliver the budget later this month. (GSM, based on IMF meeting coverage)
Source: GSM · USA (original Chinese edition)
Photo: 伦敦塔桥与泰晤士河。 Photo by Aleem Yousaf, Wikimedia Commons, CC BY-SA 2.0.
